LONDON (Alliance News) - FBD Holdings PLC Thursday said it will continue its work to restore itself to profitability in the rest of 2015.
"For the remainder of 2015, FBD will seek to continue to restore profitability through risk selection improvements and rate increases where these are merited or required. The board is confident that the rating actions already taken along with the exceptional service ethos of its employees will ensure that the group continues to deliver for its customers and that it will ultimately revert to delivering superior returns to shareholders over the insurance cycle," the Ireland property and casualty insurer said in a statement.
In a statement for the first quarter of 2015 and for the period between then and Thursday, FBD said trading conditions in the Irish insurance market are challenging in 2015.
"Market rates continue to harden for both car insurance and business insurance, while home insurance rates remain weak with increased competition for new business given a benign winter and the absence of significant weather events," FBD said.
It said its gross premium written to the end of the first quarter was marginally lower than that written in the corresponding period the prior year, but said firmer pricing "substantially offset" reductions in volume.
"Overall, the group expects that its share of the insurance market is likely to have remained static in the year to date," FBD said.
The company said there are early signs that its actions are restoring business written in 2015 to a profitable state.
"Economic growth will ultimately benefit FBD. However, the continuing significant uncertainty in the claims environment will impact the development of booked claims reserves and profitability in 2015, and FBD has taken appropriate underwriting and rating action to date," the company said.
The company said it won't pay an interim dividend in August but will make a decision on any final dividend when it knows the results for 2015.
It said its financial services businesses are "broadly in line" with the prior year.
FBD shares were untraded in London Thursday. The stock last traded at EUR9.93.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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